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From energy sink to energy source: why data centres must bring their own flexibility
22/6/2026
10 min read
Feature
As AI drives a surge in electricity demand, grid operators are increasingly asking data centre developers to provide their own flexibility. Speakers at the recent Innovation Zero event argued that batteries, virtual power plants and new operating models could transform data centres from passive consumers into active participants in the electricity system. Kristy Jooste, Senior Content Officer, Energy Institute, reports.
For decades, electricity networks were built around a relatively simple assumption. Large consumers drew power from the grid when they needed it, while utilities built the infrastructure required to meet demand.
The rapid growth of AI and hyperscale computing is beginning to challenge that model. At the Innovation Zero World Congress at Olympia London in April 2026, industry leaders argued that the scale and speed of modern data centre demand mean operators can no longer be treated as passive loads. Instead, they must become active participants in managing the electricity system.
Arshad Mansoor, President and CEO of the Electric Power Research Institute (EPRI), described the challenge in stark terms. Historical electricity demand growth gave network operators decades to plan and expand infrastructure. Today’s wave of AI-driven investment is operating on a very different timetable.